Golden Edge Entertainment Inc (OTCBB:GDEE) Flies the Jolly Roger
Golden Edge Entertainment Inc (OTCBB:GDEE) has been actively traded for no more than eleven days and considering its young age, its performance is nothing short of remarkable. It started on August 7 when its price was just $0.51. An absolute outburst sent it flying on the next trading day and GDEE suddenly found itself at well over $1 per share. The inevitable correction followed, but the ticker managed to recover rather well and it now seems to be marching towards the higher end of the charts. Yesterday, it added an impressive 19% and it even hit an intraday high of a truly massive $3 per share. Early trading today is positive as well. About thirty minutes after the opening bell, the ticker is sitting at $1.89 (a further 2% in the green).
Some people are complaining about the lack of significant volume, but, at least in theory, the ticker’s explosive run should draw more investors to the stock sooner or later. The people in charge of the OTC Markets, however, aren’t sure if GDEE really deserves more attention.
Yesterday, the company profile received a Caveat Emptor badge which, as you probably know, is designed to make you think twice about putting your money in the enterprise that has earned the stamp. Time to find out what made the people behind the OTC Markets put a Jolly Roger flag on GDEE‘s profile.
Their Caveat Emptor Policy page suggests that they’re not particularly fond of promoted penny stocks. Unfortunately, GDEE is a promoted penny stock. The pump started shortly before the first active sessions and it’s still going strong. The total compensation amounts to $37 thousand and the outfits in charge are called My Soaring Penny Stocks and Equities That Soar.
In their emails from earlier today, they said that GDEE could eventually reach $10 per share which suggests that they haven’t seen the company’s latest 10-Q. If they had seen it, they would have been a bit more conservative with their projections.
GDEE‘s corporate headquarters appears to be a farm in the middle of rural Tennessee and its latest balance sheet, the one recorded at the end of Q2, looks like this:
- total assets: $240
- total liabilities: $1,563
- NO revenue since inception
- quarterly net loss: $12,770
To avoid any confusion, we should probably point out that the figures above are not in thousands and they come from a company that is trying to convince you that they can make an impression on the hi-tech augmented reality industry.
And that brings us on to an interesting question: “If GDEE really is in such a poor shape, then why are the paying parties so willing to spend money in order to pump the stock?”.
The truth is, we’ll probably never know. What we can say for sure is that there are some people who can take advantage of GDEE‘s inflated price and they can make quite a lot of money. The ones who exercised 400 thousand warrants at $0.05 apiece at the end of March provide a prime example. The ones who hold an additional 4.6 million warrants exercisable at the same price are in an even better position. Sadly, if these people decide to cash in, the regular investors might be left with a bitter taste in their mouths.
